Ancestry ups spread on $1.15 billion term B to Libor plus 425 bps

By Sara Rosenberg

New York, Aug. 15 – Ancestry.com Operations Inc. increased pricing on its $1.15 billion seven-year covenant-lite term loan B (B2/B) to Libor plus 425 basis points from Libor plus 400 bps, according to a market source.

Also, the original issue discount on the term loan was set at 99, the wide end of the 99 to 99.5 talk, the source said.

The term loan still has a 0% Libor floor and 101 soft call protection for six months.

In addition, the company will now increase pricing on its existing term loan due 2023 to Libor plus 375 bps.

Morgan Stanley Senior Funding Inc., J.P. Morgan Securities LLC, Goldman Sachs Bank USA, Deutsche Bank Securities Inc., KKR Capital Markets, Barclays, BofA Securities, Inc., RBC Capital Markets and UBS Investment Bank are the joint lead arrangers and bookrunners on the deal. JPMorgan is the administrative agent.

Commitments and consents are due at noon ET on Friday, the source added.

With this transaction, the company is seeking an amendment to and partial repayment of its existing $1.75 billion term loan B and an amendment and extension of its existing $100 million revolving credit facility.

Along with repaying a portion of the existing term loan B, the new term loan will be used with cash on the balance sheet to fund a dividend to shareholders, and pay fees and expenses.

Ancestry is a Lehi, Utah-based online family history resource.

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